Investment Essentials: Diversification and Specialties

I have written about this many times in the blog before but I cannot state just how important diversification is and why it should also be taken with a grain of salt when you yourself have an expertise. Diversification, if you don't know, is the idea that you are better protected if you spread out your investments into many different areas. This could be diversification through different stocks, different sectors, or even different investments such as mutual funds, ETFs (exchange trade funds), or others.